Temporary Ban on Internet Tax Nears End

A moratorium on taxing Internet services expires Saturday, and a push to extend it is bogged down by concerns that making the ban permanent would curb the ability of state and local governments to collect traditional telecommunication taxes.

WASHINGTON (AP)A moratorium on taxing Internet services
expires Saturday, and a push to extend it is bogged down by
concerns that making the ban permanent would curb the ability of
state and local governments to collect traditional
telecommunication taxes.

For some, a bigger problem is the federal government imposing
its will on states.

"This is the federal government telling state and local
governments that they no longer have control over their revenue
sources," said David Quam, director of state-federal relations at
the National Governors Association....

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